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Topic
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Our EC has over the past year or so been unimpressed with the performance of the S/Manager. Last 2 AGM’s wanting us to agree a new 5 Yr agreement without providing the agreement with the meeting notice; not getting quotes for “recommended work” in reasonable time (5 months); High priced quotes eg quotes provided by a “Particular contractor” $8,500 Vs another $1,300 for work; Not actioning instructions to alter Term deposits periods when requested; Fobbing us off when EC pointed out last AGM Minutes were inaccurate; They stopped putting Minutes into Minute book in 2013, and did not advises EC & when asked to record data declined (which is actually an agreed service per the agreement); failing to advise an Insurance claim to EC, which when later known, (from the accounts) raised concerns involving a “Particular contractor” & work done to mitigate a loss. And much more.
The EC interviewed candidates & at an EC meeting considered S/Managers proposals, selected one to recommend to an EGM & resolved to proceed to an EGM (on site). The Secretary called the EGM (all documents organised & sent 22 days in advance) (concerned the S/Manager may try and sabotage) and the current Strata Manager was advised formally that the EGM was happening and provided with a copy of the Meeting notice the day the meeting was called.
At that time he was asked formally to confirm if any Lot owner had not paid their Levy as at the date the meeting was called & to confirm if there had been no changes to address for lot owners, which had previously been provided.
It appears that the S/Manager is now not communicating with the EC (Secretary) and there is a concern that at the time of the meeting it will not have been provided.
Any suggestions on how to handle this & to cut off potential problems before they become large.
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Winston said.…. It appears that the S/Manager is now not communicating with the EC (Secretary) and there is a concern that at the time of the meeting it will not have been provided.
I assume that “it” means the requested details on unpaid levy contributions and on the strata roll, in which case provided the request was made of the Strata Manager in accordance with Sect 37 of the NSW Strata Schemes Management Act there’s a maximum penalty of $5,500 for their non compliance.
That’s of lesser importance in my opinion than the Owners Corporation (O/C) making sure that it’s complied with the termination provisions of its current Agency Agreement with its Strata Manager, where the typical requirement in the absence of a mutual agreement between the parties is three (3) months written notice by the O/C prior to its current expiry date.
Another important factor is continuity, where in the circumstances you describe the current strata manager will likely, and contrary to best practice, not provide the Owners Corporation’s records to their replacement in a timely manner, in which case your preferred new Strata Manager must be made aware of that likelihood and encouraged to develop solutions to overcome it.
Regarding the propriety of the extraordinary general meeting (EGM), the secretary has properly exercised their duties provided they used the best available information on the strata roll to distribute the agenda papers for the EGM, and as a simple majority vote is all that’s required to terminate an Agency Agreement and to execute another, the fact that there may be a vote by some possibly un-financial owners is unlikely to be of consequence; albeit not ideal.
The best solution in addition to those that I’ve suggested would, on the assumption that the motion to terminate the existing and to appoint a new Strata Manager passes, be to to amend the motion at the meeting (that’s permitted) to the extent that the actual date of termination is say 60 days hence, thereby giving the incoming Strata Manager some time to arrange handover.
No problem.
I’m pleased that the srategy had the desired effect, despite the fact that I miscalculated the penalty; it’s actually $2,200
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